Record cold and record demand are playing havoc in certain spot markets, driving markets crazy. Natural gas prices are rising and big swings in heating oil futures as the market tries to balance strong demand with supply.
Oil looks heavy while the stock market is in a Fed induced stupor. A rumor overnight of a blast in the Suez Canal was denied by the Egyptian military yet is a reminder that we have seen the market put in a sizable Egyptian premium.
So why is the US manufacturing sector shinning as compare the EU? Well one reason has to be the historically low natural gas prices. The Impact that new production techniques are having on the manufacturing sector cannot be underestimated.